WorldOil

Global E&P weathers the storm

OPEC production cuts took a bite out of global oil output last year, resulting in a total reduction of 2.4% for the world. The cartel began reducing production in late 2008 in response to the steep decline of crude oil prices and demand, and continued into 2009, although, as oil prices returned to the $70–$80 range toward the end of the year, the cartel had trouble maintaining discipline among its members, and compliance with production targets slipped to 56% in December. Nevertheless, OPEC succeeded at reducing its output in 2009 by 1.96 million bpd, or 6.2%, compared with the previous year.